 has signed a 30-year agreement, for exclusive mining rights at the Weld Range project in WA, with Sinosteel.){kind=link}
Fenix wins 290mt iron ore project
Fenix Resources (ASX: FEX) has signed a 30-year agreement, for exclusive iron ore mining rights at the Weld Range project in WA, with Sinosteel Midwest Corporation.
The project, about 500km from Geraldton, hosts an iron ore grade of 56.8% and encompasses several high-grade hematite direct shipping ore deposits, including the premium Beebyn-W11 deposit with 20.5mt of ore at a grade of 61.3%.
Fenix executive chairman John Welborn says securing the project immediately surrounding the company’s existing operations in the Weld Range is a game changer.
“Development of the Weld Range project has long promised to be a significant value creator for WA,” he said.
“This major mining and logistics project is a perfect match for Fenix’s ambition and track record of achievement.
“Having recently achieved our goal of successfully commissioning our third iron ore mine and attaining our targeted production run rate of 4mtpa during [FY25], the Fenix team now have the exciting opportunity to extend our ambitions.”
Fenix will pay a total of $60m to Sinosteel, a subsidiary company of the world’s largest steel producer — China Baowu Steel Group.
“Sinosteel are a foundation partner in our growth as an emerging iron ore producer. We are delighted this successful partnership has now expanded to include Baowu Group, the world’s largest steelmaker.”
Fenix is currently undertaking a feasibility study for the Weld Range project and remains committed to maintaining its production rate of 6Mtpa.
The company plans to work with Baowu to extend production to 10Mtpa.